Union Transport Company Ltd supplies the following details in respect of a truck of a 5-tonne capacity:
Question:
Union Transport Company Ltd supplies the following details in respect of a truck of a 5-tonne capacity:
The truck carries goods to and from the city covering a distance of 50 kms each way.
On outward trip, freight is available up to the full capacity and on return trip, 20 per cent of capacity.
Assume that the truck runs on an average of 25 days a month. Work out:
(a) Operating cost per tonne-km, and
(b) Rate per tonne per trip that the company should charge if a profit of 50 per cent on freight is to be earned.
Transcribed Image Text:
Cost of truck Estimated life (years) Diesel, oil grease, etc. per trip each way Repairs and maintenance per month Driver's wages per month Cleaner's wages per month Insurance per year Tax per year General supervision charges per year 18,00,000 10 450 10,000 10.000 5,000 24,000 12,000 84,000
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Related Book For
Management Accounting Text Problems And Cases
ISBN: 9781259026683
6th Edition
Authors: M Y Khan, P K Jain
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